1.0 History and Purpose of the Land Value Survey.

1.1 The survey was initiated in 1941 and is sponsored
annually by the Iowa Agriculture and Home Economics Experiment
Station, Iowa State University. Only the state average and the
district averages are based directly on the ISU survey data. The
county estimates are derived by using a procedure that combines
the ISU survey results with data from the U.S. Census of
Agriculture. The survey was conducted by Michael Duffy and Darnell
Smith.

1.2 The survey is intended to provide information on general
land value trends, geographical land price relationships and
factors influencing the Iowa land market.

1.3 The survey is based on reports by licensed real estate
brokers and selected individuals considered to be knowledgeable of
land market conditions. Approximately 1100 surveys are mailed each
year. Normally 500-600 completed surveys are returned. The 2000
survey is based on 603 usable responses.

1.4 Participants in the survey are asked to estimate the value
of high, medium and low grade land in their county. Comparative
sales and other factors are taken into account by the respondents
in making these value estimates.

2.0 Analysis by State.

2.1 The 2000 state average for all grades of land was
estimated to be $1857 per acre.

2.2 The increase in the state value was $76 per acre from
1999.

2.3 The percentage increase was 4.3 percent from 1999.

3.0 Analysis by Crop Reporting District.

3.1 The highest land values were reported for Northwest
Iowa, $2198 per acre.

3.2 The lowest land values were estimated for South Central
Iowa, $992 per acre.

6.4 There were 3 negative factors listed by over 10 percent of
the respondents. Poor markets or prices or some variation of that
theme were listed by 70 percent of the respondents. The other
factors were: interest rates (16 percent) and poor agricultural
economy or outlook (10 percent).

7.0 Number of Sales Compared to Previous Year.

When asked to compare the number of sales in 2000 relative to
1999, 21 percent reported more, 51 percent the same, and 28 percent
reported less.

8.0 Land Sales by Buyer Category.

The 2000 survey asked respondents what percent of the land sales
were sold to four categories of buyers.

8.1 The majority of farmland sales: 65 percent were to
existing farmers. Investors represented 29 percent of the sales.
New farmers represented 3 percent of the sales and, other
purchases were 3 percent of sales.

8.2 Sales to existing farmers by Crop Reporting Districts
ranged from 71 percent in Northwest to 51 percent in
Southwest.

9.0 Interpretation of Survey Results.

The average 4.2 percent increase in land values is in line with
other surveys of Iowa land values. It is important to remember the
different time periods covered when comparing surveys. The Iowa State
University survey reported here is an annual survey as of November 1,
2000.

9.1 The survey shows the first increase in average land
values in three years. The survey showed an increase in values in
all counties and Crop Reporting Districts.

9.2 The survey respondents show that in 2000 the level of
investor interest in Iowa farmland remained strong. (The survey
also showed an increase in those reporting more sales activity
relative to 1999).

9.3 The positive and negative factors clearly summarize the
current situation with respect to the Iowa farmland market. Low
commodity prices are exerting considerable downward pressure on
prices but offsetting this are the government payments, the good
yields and strong demand for land. All of these factors show the
relative instability that the land market could experience over
the next few years. The current government program is set to
expire in 2002, yields are always variable, and the demand for
land is a function of many things including the stock market.

Table 1. Recent Changes in Iowa Farmland
Values

Year

Value Per
Acre

Dollar
Change

Percentage
Change

1966

354

36

11.4

1967

397

42

12.0

1968

409

12

3.0

1969

419

10

2.5

1970

419

0

0.0

1971

430

11

2.6

1972

482

52

12.0

1973

635

154

31.9

1974

834

199

31.3

1975

1095

261

31.3

1976

1368

273

24.9

1977

1450

82

6.0

1978

1646

196

13.5

1979

1958

312

19.0

1980

2066

108

5.5

1981

2147

82

3.9

1982

1801

-346

-16.1

1983

1691

-110

- 6.1

1984

1357

-334

-19.8

1985

948

-409

-30.2

1986

787

-161

-17.0

1987

875

88

11.2

1988

1054

179

20.4

1989

1139

85

8.1

1990

1214

75

6.6

1991

1219

5

.4

1992

1249

30

2.5

1993

1275

26

2.1

1994

1356

81

6.4

1995

1455

99

7.3

1996

1682

227

15.6

1997

1837

155

9.2

1998

1801

-36

-1.9

1999

1781

-20

-1.1

2000

1857

76

4.3

Table 2. Average Value Per Acre of Iowa Farmland Listed by Crop
Reporting Districts and Grades of Land